Orion Flight Services, Inc. v. Basler Flight Service

2006 WI 51, 714 N.W.2d 130, 290 Wis. 2d 421, 2006 Wisc. LEXIS 235
CourtWisconsin Supreme Court
DecidedMay 19, 2006
Docket2003AP1731
StatusPublished
Cited by49 cases

This text of 2006 WI 51 (Orion Flight Services, Inc. v. Basler Flight Service) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orion Flight Services, Inc. v. Basler Flight Service, 2006 WI 51, 714 N.W.2d 130, 290 Wis. 2d 421, 2006 Wisc. LEXIS 235 (Wis. 2006).

Opinion

LOUIS B. BUTLER, JR., J.

¶ 1. Orion Flight Services, Inc. ("Orion") seeks review of a published *427 decision by the court of appeals 1 reversing the circuit court's preliminary injunction requiring that Basler Flight Service, a division of Basler Turbo Conversions, LLC ("Basler"), set the price of its aviation fuel pursuant to the minimum markup provisions for motor vehicle fuel under the Wisconsin Unfair Sales Act. 2

¶ 2. At issue in this case is whether aviation fuel constitutes "motor vehicle fuel" under the Wisconsin Unfair Sales Act, subjecting aviation fuel to the Act's minimum markup provisions for motor vehicle fuel. 3

¶ 3. Upon review, we conclude that "motor vehicle fuel" does not include aviation fuel, that the minimum markup provisions in Chapter 100 of the Wisconsin Statutes do not apply to aviation fuel, and that Orion cannot rely on Wis. Stat. § 100.30 for a private cause of action against Basler. We also conclude that the Wisconsin Administrative Code §ATCP 105.001(4) (Sept., 1990) does not incorporate aviation fuel in its definition *428 of "motor vehicle fuel," and is thus consistent with the statute. We therefore affirm the court of appeals' decision reversing the circuit court's preliminary injunction.

I — I

¶ 4. The relevant facts are undisputed. In 1957, Winnebago County and Basler entered into an agreement for Basler to sell aviation fuel at the Wittman Regional Airport ("Wittman") in Oshkosh, Wisconsin. Basler is a Fixed Based Operation ("FBO"), which is a vendor of services at an airport or airfield. Basler sells "Jet A fuel" and "100 LL aviation fuel" at Wittman through a self-service pump for use by airplane owners, as well as through the use of a fleet of trucks that deliver the fuel to aircrafts. Basler continues to operate under this agreement.

¶ 5. From 1957 to 2002, Basler had been the sole provider of aviation fuel for Wittman, and the only FBO under an agreement with Winnebago County. However, on May 29, 2002, Winnebago County entered into an agreement with Orion to sell aviation fuel at Wittman. Orion, like Basler, sells Jet A fuel and 100 LL aviation fuel. Unlike Basler, Orion only delivers the fuel to aircrafts and does not operate self-service pumps.

¶ 6. In 2002 and early 2003, the parties engaged in a "price war" where the price of aviation fuel at Wittman dropped from $2.59 to a low of $1,599 per gallon. 4 In November 2002, Orion filed a complaint *429 with the Wisconsin Department of Agriculture, Trade and Consumer Protection ("DATCP"). Orion alleged that when Basler set its price of fuel at $1,599 per gallon, Basler set its fuel price below cost, in violation of the Unfair Sales Act, Wis. Stat. § 100.30(3). 5 DATCP began an investigation into Basler's fuel prices. 6

¶ 7. On March 19,2003, before DATCP completed its investigation, Orion filed a suit in Winnebago County alleging that Basler sold motor vehicle fuel *430 below the statutory minimum required for motor vehicle fuel, in violation of the Unfair Sales Act, and seeking injunctive relief.

¶ 8. Two days after Orion filed this suit, Basler received a warning letter from DATCE DATCP concluded that Basler's "cost" of the 100 LL aviation fuel was $1.78, and therefore Basler violated Wis. Stat. § 100.30 when it sold its 100 LL aviation fuel at prices below $1.78. 7 In the warning letter, DATCP further concluded that the minimum markup requirement under the Unfair Sales Act for sales of "motor vehicle fuel" did not include aviation fuel.

[Wle have explored the issue of whether or not 100 LL aviation fuel should be treated as "motor vehicle fuel" under the Unfair Sales Act.... We have concluded that 100 LL aviation fuel is not "motor vehicle fuel" as the term is used in the statute. We base this conclusion on the common sense fact that airplanes are generally not considered "motor vehicles" under various transportation statutes and codes. Furthermore, it seems illogical that the term "motor vehicle fuel" as it is used in the statute was intended to be used outside of the contents of sales of fuel intended for highway use through the well established industry of retail gas stations and convenience stores. 8

¶ 9. Although DATCP concluded that aviation fuel was not "motor vehicle fuel," it also warned Basler that "any person who is injured as a result of a competitor selling motor vehicle fuel below cost may sue for *431 $2,000 per day or treble actual damages, whichever is greater, plus reasonable accounting and attorney fees." 9 In addition, later that same day, DATCP followed up with a second letter to Basler, stating that

[S]ome additional information has come to our attention regarding the question of whether aviation fuel is covered under the Unfair Sales Act as "motor vehicle fuel." Based on this new development, we have decided that we need to do additional research on this question before we issue a final interpretation on this issue. Specifically, in the first paragraph on page 2 of the warning letter, we state an opinion that 100 LL aviation fuel is not "motor vehicle fuel" under the Unfair Sales Act. That paragraph and the opinion it expresses is hereby retracted. However, the remainder of the warning letter still stands. 10

¶ 10. This second letter explicitly retracts "the opinion that 100 LL aviation fuel is not 'motor vehicle *432 fuel.'" However, DATCP failed to retract its conclusion that the cost for Basler's 100 LL aviation fuel was $1.78. The analysis used to reach the $1.78 figure did not include a minimum markup calculation. 11 See Wis. Stat. § 100.30(2)(am)lm.a. to e. Moreover, the record contains no final interpretation of "motor vehicle fuel," and no final order from DATCP

¶ 11. On March 19, 2003, the Winnebago County Circuit Court issued an ex parte temporary restraining order, ordering Basler to, among other things, "immediately refrain from selling any motor vehicle fuel below the minimum prices established by Wis. Stat.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. A A A
Court of Appeals of Wisconsin, 2025
Wisconsin State Legislature v. Josh Kaul
Court of Appeals of Wisconsin, 2024
State v. Q. D. R.
Court of Appeals of Wisconsin, 2024
Clint Heiman v. Chris Roe
Court of Appeals of Wisconsin, 2022
Danelle Duncan v. Asset Recovery Specialists, Inc.
2022 WI 1 (Wisconsin Supreme Court, 2022)
State v. Chrystul D. Kizer
2021 WI App 46 (Court of Appeals of Wisconsin, 2021)
Arlene C. Corpuz v. Christopher S. Gregerson
Court of Appeals of Wisconsin, 2021
Angela Lee Linsmeyer v. Jason Scott Linsmeyer
Court of Appeals of Wisconsin, 2020
David A. Steinke v. Scott R. Poppe
Court of Appeals of Wisconsin, 2020
Steven J. Piper v. Jones Dairy Farm
2020 WI 28 (Wisconsin Supreme Court, 2020)
Paczkowski v. My Choice Family Care, Inc.
384 F. Supp. 3d 991 (W.D. Wisconsin, 2019)
Sec. Health Plan of Wis. Inc. v. Am. Standard Ins. Co. of Wis.
2018 WI App 68 (Court of Appeals of Wisconsin, 2018)
State v. Bd. of Review for the Town of Delafield
2018 WI App 26 (Court of Appeals of Wisconsin, 2018)
Milwaukee Acad. v. Dep't of Children & Families
2018 WI App 13 (Court of Appeals of Wisconsin, 2018)
New Richmond News v. City of New Richmond
2016 WI App 43 (Court of Appeals of Wisconsin, 2016)
Douglas L. v. Arika B.
2015 WI App 80 (Court of Appeals of Wisconsin, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
2006 WI 51, 714 N.W.2d 130, 290 Wis. 2d 421, 2006 Wisc. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orion-flight-services-inc-v-basler-flight-service-wis-2006.